Logistic Management For Singapore Food Delight Manufacturing Pte Ltd, Essay.

Company Profile

Discuss about the Logistic Management for Singapore Food Delight Manufacturing Pte Ltd.

This essay has been written for analyzing the effectiveness and efficiency of the aspects of purchasing management. Singapore food delight manufacturing Pte ltd has been taken consideration for this research. The main objective behind this essay is to analysis the role of purchasing management into an organization and how it impacts on the organization’s cost and profit. In this essay many factors have been analyzed to check the efficiency of purchase management team and their impact over the organization and its manufacturing and other operations.

Singapore food delight manufacturing Pte ltd is one of the most known manufacturing companies in food industry. The main product of the company is Singapore hawker. HACCP certified company for its operations and its quality. Company has introduced many new technology of cooking into the market. The main vision of the company is to provide the best quality product to its customers in cheap price. Company believes to provide the happiness into small boxes in which the food of the company is packed. Company uses the best of the technology to meet the goals and objectives of the organization.   The technique of inventory management, order cycle, order quantity etc is quite competitive of Singapore food delight manufacturing Pte ltd.

The main target market of the company is local market where the company supplies the fresh product to its customer is such a packaging that the product could be fresh for a long period. Company offers frozen food to its customer which could even eat directly by the consumers. Company is planning new strategies to grab the more market by offering the best quality product to its customers (Ponomarov & Holcomb, 2009). SFD is the only company of Singapore which produces such food products with the authentic taste. Company has launched many new products like chicken rice, nasal briyani, chicken briyani, laksa, carrot cake etc.

Every company has some purchasing goals to accomplish the organizational goal. It is required for every manufacturing company to establish some goals of purchasing the raw material as this is the main element of the manufacturing process (Jüttner, 2005). Company must set the goal such as purchasing the best quality product in cheapest price, bargain with supplier, identify the best supplier into the market, purchase only required product, and manage a list of all the required product and their frequency of requirement. At Singapore food delight manufacturing Pte ltd (SFD) the purchasing goals are as follows:

• Quality of raw material:

Purchasing Goals of Singapore Food Delight Manufacturing Pte Ltd

The main goal of the company is to buy the best quality of raw material such as spices, rice, chicken, flour etc. SFD could only provide the best quality product to its consumer, if it too gets the best quality of raw products (Carter & Liane Easton, 2011).

• Get the order on time:

It is crucial for every manufacturing company to get the order on time. If a company fails to get the material on time, than the production of company could stop which would lead the company on a great. 

• Maintain the right supply of raw products:

The crucial goal of SFD is maintaining the supply of raw products in concern of quantity, quality and value.

• Minimize the operational money:

The other goal of the company is minimizing the operational cost by ordering the product at the right time and from the nearest supplier.

• Competitive:

Company focuses on be competitive. So that it can take a step further from its competitors. SFD also focus to competitive factor while purchasing the raw products.

• Reliability on suppliers:

Company takes care about the suppliers and relies on them to accomplish and meet the objectives and goals of the company.

• Value of material:

The crucial goal of the company is minimizing the cost. For it company analyzes that the purchased product is of worth or not.

• Efficiency and Effectiveness:

Efficiency and Effectiveness is the main goal. The raw products must be efficient and must be effective.

• Cost Saving:

Company focuses on saving the cost by using many technologies and other accounting and logistic technique.

• Strategic relationship with suppliers:

The goal of maintain relationship with supplier helps the company in retaining the best supplier for a long period.

Thus, the purchasing goals of SFD is quite competitive and company is mangling on its fullest to meet all the objectives so that company can save the cost and can provide the best quality products to its consumer for grabbing more market and satisfy the customer to enhance the goodwill in the market.

For meeting the purchasing goals of the company, the main aspect of the company is to choose the best supplier. Only a good supplier could help the company in meeting all its objectives and goals. The supplier selection criteria of SFD are based on the old technique. Company doesn’t take the suppliers selection seriously (Van Weele, 2009). So following are some suggestions to the SFD to follow while choosing the supplier. So that company could fulfill all the objectives and goals.

Selecting the supplier is a crucial part of every manufacturing company. Suppliers are those who supply the raw material goods to manufacturing company. The SFD is suggested to apply the following criteria while choosing the suppliers:

• Identify the suppliers:

Supplier Selection Criteria and Issues

ompany must analyze all the key suppliers of raw material and must analyze according to the requirement of the company. SFD must analyze all the suppliers which are nearest to it and identify that how much of them could help the company to achieve its final goal (Zsidisin & Siferd, 2001). 

• Measuring the performance of suppliers:

SFD must measure the performance of every identified supplier and must find out that which supplier is giving the best performance in delivering the material at right time, in right quantity and in cheap price. Company could take the help of an auditor to analyze all the factors about the supplier company.

• Gaining the feedback of suppliers:

Another tool, SFD could use to identify the best supplier is gaining the feedback from supplier itself. For it, company could ask the supplier to fill a self assessment questionnaire. It could help the company in analyzing the performance of the supplier company (Gelderman & Semeijn, 2006).

• Achieving certification:

Certification could also help the company to identify the best supplier and take the help of those suppliers for a long time. Certification could be provided by the companies to each other according to the relations and behavior.

• Developing partnerships:

A strategic partnership could also help the SFD in managing the best relationship with the suppliers and ask them to provide the best quality product in a economic price.

• Ensuring the quality of material for the consumers:

While choosing the best supplier for the company, SFD must analyze that the chosen supplier would provide the best quality product which would help the company in becoming more competitive (Fawcett, Magnan & McCarter, 2008).

Thus SFD must follow the above mentioned recommendations to choose the best supplier which could provide the company best quality product in economic price. 

Many issues could be faced by the company while choosing the best supplier such as:

• Pricing Problem
• No guarantee of Services
• Quality Issues
• Competition
• No delivery on time (Gelderman & Weele, 2002)

Thus, the above mentioned issues could be face by the company. For sort out these problems, SFD must use the following techniques:

1. Analyze all the supplier’s services and chose the best among them
2. Take the help of secondary data to identify the supplier’s goodwill and services
3. Company could conduct a research to analyze the cost and can opt the most economic cost (Miles & Snow, 2007)
4. SFD must use accounting technique and take the help of exports to identify the price and quality of the raw material.

The purchasing goals of SFD are quite competitive. But according to a research it has been found that company could enhance the capabilities more and could achieve the goal easily, if it chooses the information, communication and technology in it. For meeting the purchasing goals of the company, ICT plays an important role. Due to it, SFD not only can enhance the capabilities but even can reduce the expenses also. The technologies and techniques used in the company are quite old (Sachan & Datta, 2005). So following are some suggestions to the SFD to follow while implementing the new techniques. So that company could fulfill all the objectives and goals.

Recommendation to SFD to Select the Suppliers

It is recommended to SFD to make some changes in existing technologies and communication technology so that company could achieve the goals more efficiently. Following are some changes which company could implement in the operations of the company to make some better changes.

• Company could take the help of many existing software in the market of logistics and supply chain management.
• Company could take the help of technology to communicate the requirement of raw product and order of that.
• Company could implement the new technology into the warehouse and factory so that manger could analysis that when to order the new material (Shepherd & Günter, 2006).
• Company could use the accounting software and technique to analysis the order cycle and could order the material according to that.
• Company could analysis the logistic through technology and can plan the purchasing according to that.

The purchasing goals of SFD are quite competitive. But according to the analysis it has been found that company could reduce the purchasing cost more and enhance the capabilities more and could achieve the goal easily, if it focuses on reduction of extra expenses occur while ordering the new lot (Zhao, Flynn & Roth, 2007). For meeting the purchasing goals of the company, cost plays the most crucial role. Due to it, SFD not only can enhance the capabilities but even can reduce the expenses also. So following are some suggestions to the SFD to follow for reducing the cost of purchase. So that company could fulfill all the objectives and goals.

It is recommended to SFD to make some changes in existing method of reducing the cost and making control over the cost so that company could achieve the goals more efficiently. Following are some changes which company could change in reducing the cost of the company and enhance the profitability.

• Company must place the new order according to the order cycle.
• Company must purchase the raw material from the nearest supplier to reduce the transport cost.
• Company must focus over the wearing and tearing charges and should work to reduce it (Stock, Boyer & Harmon, 2010).
• Company must use the communication technology to place the order so that supplier could held be responsible in case of any failure.
• Company must maintain the best relationship with suppliers to get some offer.
• Company must make control over loading, unloading and warehouse charges.

Conclusion:

It can be concluded through this study that purchasing management is a main part of logistic management. It has been analyzed through this study that Singapore food delight manufacturing pte ltd is one of the growing companies in local market. The company has used best of the technologies to accomplish and meet the objectives and goals of purchasing management of the company.  It has been found that if company opts and makes changes in some of the using techniques; it could enhance its profitability and could deliver the more qualitative food to the consumers in economic price.

Through this study and analysis it can also be concluded that company is growing rapidly into the market and the customers are quite satisfy with the services of the company. It could also be concluded that the suppliers of the company are quite competitive and the techniques of the company helps it to take a further step into the industry. 

References:

Zhao, X., Flynn, B. B., & Roth, A. V. (2007). Decision sciences research in China: current status, opportunities, and propositions for research in supply chain management, logistics, and quality management. Decision Sciences, 38(1), 39-80.

Stock, J. R., Boyer, S. L., & Harmon, T. (2010). Research opportunities in supply chain management. Journal of the Academy of Marketing Science, 38(1), 32-41.

Shepherd, C., & Günter, H. (2006). Measuring supply chain performance: current research and future directions. International Journal of Productivity and Performance Management, 55(3/4), 242-258.

Sachan, A., & Datta, S. (2005). Review of supply chain management and logistics research. International Journal of Physical Distribution & Logistics Management, 35(9), 664-705.

Miles, R. E., & Snow, C. C. (2007). Organization theory and supply chain management: An evolving research perspective. Journal of operations management, 25(2), 459-463.

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Van Weele, A. J. (2009). Purchasing & supply chain management: analysis, strategy, planning and practice. Cengage Learning EMEA.

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Zsidisin, G. A., & Siferd, S. P. (2001). Environmental purchasing: a framework for theory development. European Journal of Purchasing & Supply Management, 7(1), 61-73.

Gelderman, C. J., & Weele, A. J. (2002). Strategic direction through purchasing portfolio management: a case study. Journal of Supply Chain Management, 38(1), 30-37.